On Friday, November 1, the BNB Foundation announced successful completion of the 29th quarterly campaign of the BNB Network. This latest event of routine symbol burning reaffirms the project’s commitment to a deflationary approach to ensuring growth.
This quarter, 1,772,712,363 BNB tokens (worth approximately $1.07 billion) were automatically burned. According to the foundation’s blog post, this quarter’s token burning took place (and subsequent events will take place) directly on Binance Intelligent Chain (BSC), and the burn quantity was sent to the “black hole” address.
Could the latest Burn event push the price of BNB to $600?
Token burning, a process during which tokens or coins are intentionally and permanently removed from circulation, is intended to enhance the value of the token. Similarly, quarterly token burns can have a significant impact on the price of BNB, reducing the total supply, thus creating a deflationary effect.
Furthermore, the regularity of BNB’s quarterly burns demonstrates the foundation’s commitment to the token’s long-term growth and success. This positive trend may have a positive impact on overall market sentiment as it strengthens investor confidence in BNB’s potential as a stable investment.
However, it is worth looking at the impact of previous quarterly burns on the BNB price to gauge the potential effect of the latest event. It is worth noting that the 28th token burn, which ended on July 22, 2024, did not exactly have a bullish effect on the value of the fourth-largest cryptocurrency.
According to CoinGecko data, the price of the BNB token as of July 22 was slightly above $600. Surprisingly, the token’s price dropped by more than 22% to a low of $464 about two weeks after the burn. BNB’s value seemed to decline amid a bearish market-wide climate.
Over the past few months, the BNB token has been mostly in a consolidation range, reflecting the state of Bitcoin and the overall cryptocurrency market. Fortunately, the major cryptocurrency appears to have returned to the bullish zone after returning to $70,000 for the first time since June.
If the forceful positive correlation between BNB and Bitcoin continues, it means that investors could see Binance’s native token return to its upward trend. Therefore, BNB appears to have a positive outlook and could reclaim $600 soon, especially if the flagship cryptocurrency remains bullish.
BNB price at a glance
At the time of writing, BNB is trading at approximately $571.8, reflecting a 0.6% price drop over the last 24 hours.
